Fat Brand CEO Under SEC Investigation, Company Reveals

Shares of Fat Brands fell after the company revealed CEO Andrew Wiederhorn was under investigation.

The U.S. Attorney’s Office in Central California, along with the Securities and Exchange Commission, are investigating the company’s 2020 merger with Wiederhorn’s investment firm, Fog Cutter Capital Group.

Gatlinburg, TN, USA -: Entrance to Johnny Rockets Diner on the Gatlinburg Strip.

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Shares of the restaurant chain fell more than 22% following the news.

Teleprinter Security Last Change Change %
FAT FAT MARQUES INC. 8.14 -2.42 -22.92%

The Securities and Exchange Commission “is formally seeking records and documents relating to, among other things, the company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between those entities and Mr. Wiederhorn, and offsets, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family” according to the regulatory filing.

Andrew Wiederhorn, CEO of FAT Brands (FOX)

The company is cooperating with the government on these matters, and the company is not currently the target of the U.S. attorney’s investigation, according to the filing.

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FAT Brands owns, among others, Fatburger, Johnny Rockets, Twin Peaks and Fazoli’s.

The United States Securities and Exchange Commission (SEC). Photographer: Andrew Harrer/Bloomberg via Getty Images (Photographer: Andrew Harrer/Bloomberg/Getty Images)

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